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Agreement on Amendment of and Accession to the Central European Free Trade Agreement

Ministry of Foreign Trade and Economic Relations of BiHII

Table of contents

- Introductory comments III

- Agreement on amendmet of and accession

to the central european free trade agreement 1

- Annex 1 To Agreement on amendmet of

and accession to the central european free trade agreement 5

- List of annexes (CEFTA 2006) 32

This document was published with financial assistance of the European Commission.

The views expressed in this foreword do not necessarily reflect the views of theEuropean Commission.

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Ministry of Foreign Trade and Economic Relations of BiH III

1. Introductory comments

After almost five-year experience in trade liberalization in the South Eastern

Europe area, acquired through implementation of bilateral free trade agreements,

countries in the region decided in the end of 2006 to enhance their economicand, in particular, trade cooperation and conclude a single free trade agreement

known as CEFTA 2006.

Although the process of negotiations on the Central European Free Trade

Agreement (CEFTA) was carried out in a fast-track procedure (one round of

negotiations each month), the end result was a quality and modern Agreement,

which, in principle, should be to the satisfaction of all signatory countries.

The following was noted as advantages or benefits brought, inter alia, by the

Agreement:

Successful regional and, within it, particularly economic and tradecooperation, as an important precondition for Western Balkans' countries

advancement towards European Union,

The new Agreement would be easier to administer and simplify contractualrelations,

New areas were introduced by the Agreement, out of which harmonizationof investment conditions in the region is of special importance for Bosnia

and Herzegovina as a country net-recipient of investments

Diagonal cumulation of origin would be applied among CEFTA Parties, and Dispute settlement mechanisms would be well improved (system of

arbitration was introduced), the mechanism for identifying and eliminating

technical barriers is improved and the like.

2. The Process of trade liberalization in South Eastern Europe

The concept of trade liberalization in the South Eastern Europe region emerged

through the establishment of the Stability Pact for South East Europe (Sarajevo,

30 July 1999) when, increase of regional integration and cooperation waslisted among the major goals of the Pact, and defined as the promotion of free

trade area and trade liberalization within the Working Table II (economic

issues).

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Ministry of Foreign Trade and Economic Relations of BiHIV

Already in January 2000, on the initiative of the Republic of Macedonia, the

Trade Working Group was established.

Ministers of the South Eastern Europe countries (Albania, Bosnia and

Herzegovina, Bulgaria, Romania, Croatia, Macedonia, Yugoslavia /Serbia andMontenegro/ and Moldova) agreed in a meeting held in Geneva (mid-January

2001) to prepare and sign a Memorandum of Understanding, by which trade

liberalization and facilitation issues among countries in the region would beregulated.

The Memorandum of Understanding on Trade Liberalization and Facilitation

was signed in Brussels on 27 June 2001.

The Signatories undertook to conclude, by the end of 2002, bilateral free trade

agreements, which would provide for a free movement of at least 90 per cent ofgoods without any tariff restrictions. A new market of approximately 55 millioninhabitants would be thereby created.

On this basis, 32 bilateral free trade agreements were concluded in the Region.

Bosnia and Herzegovina also concluded bilateral free trade agreements with all

countries in the Region.

Within the Stability Pact activities, Ministers of the Western Balkans countries

adopted a Ministerial declaration in a meeting in Rome on 13 November 2003,

asking the Trade Working Group to Recommend how best to harmonise thebilateral free trade agreements with each other in order to improve the

transparency of the network of bilateral free trade agreements and its efficient

administration.

Aiming to increase transparency, respect of international trade system rules, in

particular rules of the World Trade Organization (WTO), deepen established

trade relations among countries in the region, attract direct foreign investments

and create thereby conditions for increase of employment, economic prosperityand political stability, Ministers of the countries in the Region adopted in Sofia

on 10 June 2005 a Joint Declaration by which South Eastern Europe countriesundertook to initiate preparatory activities for the creation of a single free trade

agreement.

The Stability Pact Trade Working Group was given a mandate to consider how

to replace the existing network of bilateral agreements with a single free trade

agreement in the Western Balkans Region, like CEFTA.

On this basis, general discussions were conducted within this Working Group,

on fundamental principles and directions with a view to replace bilateral

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Ministry of Foreign Trade and Economic Relations of BiH V

agreements by the single agreement, as well as to prepare an illustrative draft

text of the future free trade agreement.

The texts were successively revised after discussions held in the Group meetings

(Chisinau - 4 May 2005, Antalya 29 and 30 September 2005, London 5 and6 December 2005 and Berlin 14 and 15 February 2006) as well as in

subsequent consultations.

Consequently, the Prime Ministers of the South Eastern European countries

adopted in Bucharest on 6 April 2006 the Joint Declaration instructing, inter alia,

responsible Ministers to conclude an agreement simultaneously providing for

accession to CEFTA for the acceding Parties and amendment of the Agreement

by all Parties to the Joint Declaration.

In the Joint Declaration of SEE Prime Ministers it is said, the Agreementshould modernize and improve CEFTA by:

Building on the bilateral trade concessions provided for in the existingbilateral free trade agreements between the Parties, and seeking where

possible to extend them;

Including harmonised provisions on modern trade policy issues such ascompetition rules and state aid, government procurement and protection of

intellectual property, trade in services and regulatory convergence in the

relevant trade-related issues, in full conformity with the rules and proceduresof the WTO;

Including clear and effective procedures for dispute settlement and amechanism to improve compliance by all parties both with the agreement

and with WTO rules, including for those parties not yet members of the

WTO;

Facilitating the gradual establishment of the EU-Western Balkan countrieszone of diagonal cumulation of origin, as envisaged in the EC

Communication of 27 January 2006;

Providing a suitable framework to manage the Agreement and review itsefficient implementation.

It is very important to stress out that the whole process was strongly supported

by the European Commission. The European perspective of the Western Balkan

countries was confirmed in the Thessaloniki Statement (June 2003). This is

particularly important in light of the fact that the European Union confirmed its

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Ministry of Foreign Trade and Economic Relations of BiH VII

Macedonia, the Republic of Moldova, the Republic of Montenegro, the Republic

of Serbia and United Nations Interim Administration Mission in Kosovo, on

behalf of Kosovo, in accordance with United Nations Security Council

Resolution 1244.

When becoming full members of the European Union on 1 January 2007, the

Republic of Bulgaria and the Republic of Romania ceased to be CEFTA

members.

4. Annex 1 to the Agreement on Amendment of and Accession to the Central

European Free Trade Agreement

The Annex 1 to the Agreement on Amendment of and Accession to the Central

European Free Trade Agreement in its substance presents agreement on new

CEFTA (CEFTA 2006). This text of the Agreement is hereby given as Appendix

2.

By this Agreement, Parties establish a free trade area in accordance with

provisions of this Agreement and WTO procedures.

A Free trade area will be established after a transitional period ending on 31

December 2008 for industrial products and on 31 December 2010 foragricultural products.

The Agreement covers trade in goods and foresees the possibility to negotiate

mutual concessions in trade in services. The Agreement also regulates

investment, public procurement and intellectual property rights issues.

The objectives of the Agreement are to:

Consolidate in a single agreement the existing level of trade liberalisationachieved through the network of bilateral free trade agreements already

concluded between the Parties;

Improve conditions further to promote investment, including foreign directinvestment;

Expand trade in goods and services and foster investment by means of fair,clear, stable and predictable rules;

Eliminate barriers toand distortions of tradeand facilitate the movement ofgoods in transit and the cross-border movement of goods and services

between the territories of the Parties;

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Ministry of Foreign Trade and Economic Relations of BiHVIII

Provide fair conditions of competition affecting foreign trade and investmentand gradually open the government procurement markets of the Parties;

Provide appropriate protection of intellectual property rights in accordancewith international standards;

Provide effective procedures for the implementation and application of thisAgreement; and

Contribute thereby to the harmonious development and expansion of worldtrade.

In view of the fact that the new agreement was to replace 32 bilateral free trade

agreements and that it was impossible to have all Parties completing their

internal legal procedures for the entry into force at the same time, the Agreement

has foreseen several entry into force options. Thus, it was stipulated that the

Agreement shall enter into force on 1 May 2007 if all Signatories submit their

ratification, acceptance or approval instruments to the Depositary (Government

of the Republic of Croatia) by 31 March 2007.

Should this not be the case, the Agreement will enter into force on the thirtieth

day after the fifth instrument of ratification, acceptance or approval has been

submitted. For other Signatories, not being among the first five, the Agreement

will enter into force on the thirtieth day after they submit their instruments of

ratification, acceptance or approval.

By the time of the preparation of this brochure, at least five signatories (the

Republic of Albania, the Republic of Macedonia, the Republic of Moldova, the

Republic of Macedonia and UNMIK/Kosovo) had submitted their ratification,

acceptance or approval instruments and for them the Agreement entered into

force on 26 July 2007.

For the Republic of Croatia, the Agreement enters into force on 22 August 2007.

Bosnia and Herzegovina and the Republic of Serbia are completing their

ratification processes.

Before the entry into force of the new Agreement for the country concerned,

bilateral free trade agreements remain in force.

The Agreement itself is comprehensive and complex. Some of the most

important provisions are:

Parties agree to establish a Joint Committee consisting of a representative ofeach Party. The Joint Committee shall supervise and administer the

implementation of the Agreement. It will be supported by the permanent

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Ministry of Foreign Trade and Economic Relations of BiH IX

Secretariat located in Brussels. The Joint Committee will decide on

functions and administrative rules of the Secretariat.

Once the Agreement enters into force, all quantitative restrictions of importsand exports and measures having equivalent effect will be abolished andnew ones cannot be introduced in trade between Parties.

Parties shall also abolish all export duties, taxes having equivalent effect toexport duties and other export duties of a fiscal nature on the day of entry

into force of the Agreement and will not introduce new ones in trade among

them.

The rights and obligations of the Parties relating to the application oftechnical barriers to trade shall be governed by the WTO Agreement on

Technical Barriers to Trade. Parties undertook to identify and eliminateunnecessary existing technical barriers within the meaning of the WTOAgreement on Technical Barriers to Trade as well as not to introduce new

unnecessary technical barriers to trade.

The Parties shall refrain from any measure or practice of an internal fiscalnature establishing, whether directly or indirectly, discrimination between

the products originating in the Parties and shall abolish such measures where

existing from the entry into force of this Agreement.

If a Party finds that dumping is taking place in trade with another Partywithin the meaning of Article VI of GATT, it may take appropriate

measures against the practice in accordance with the WTO Agreement on

Implementation of Article VI of the GATT.

Parties confirm their rights to impose safeguard measures in accordance withArticle XIX of the GATT 1994 and the WTO Agreement on Safeguards.

Parties shall, in their mutual trade, apply harmonized rules of origin. Annex4 to the Agreement lays down rules of origin for its application as well as

methods of administrative cooperation in customs matters.

Parties shall simplify and facilitate customs procedures, and reduce, as far aspossible, formalities imposed on trade.

The list of Annexes of the Agreement is hereby given as Appendix 3.

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Ministry of Foreign Trade and Economic Relations of BiH 1

Appendix 1

AGREEMENT ON AMENDMENT OF

AND ACCESSION TO

THE CENTRAL EUROPEAN FREE

TRADE AGREEMENT

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Ministry of Foreign Trade and Economic Relations of BiH2

AGREEMENT ON AMENDMENT OF AND ACCESSION TO

THE CENTRAL EUROPEAN FREE TRADE AGREEMENT

Preamble

The Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, theRepublic of Croatia, the Republic of Macedonia, the Republic of Moldova, the Republic

of Montenegro, Romania, the Republic of Serbia and the United Nations InterimAdministration Mission in Kosovo on behalf of Kosovo in accordance with United

Nations Security Council Resolution 1244 (hereinafter referred to as "the Parties"),

Having regard to the aim of eligible Parties to accede to the European Union;

Recognizing the contribution of the Central European Free Trade Agreement (hereinafterreferred to as CEFTA) to improve the readiness of Parties for membership in the

European Union as witnessed by the accession on 1 May 2004 of the Czech Republic,the Republic of Hungary, the Republic of Poland, Slovak Republic and the Republic of

Slovenia and the forthcoming accession of the Republic of Bulgaria and Romania;

Convinced of the necessity to amend CEFTA, in order to contribute to the process of

integration in Europe through the opening of CEFTA to all Parties ready to observe theprovisions of this Agreement;

Having in mind the Declaration of Prime Ministers of CEFTA, done on 29 November2005 in Zagreb;

Having in mind the Declaration of Prime Ministers of the Parties, done on 6 April 2006in Bucharest, has agreed as follows:

Article 1

Accession

The Republic of Albania, Bosnia and Herzegovina, the Republic of Moldova, the

Republic of Montenegro, the Republic of Serbia and the United Nations InterimAdministration Mission in Kosovo on behalf of Kosovo in accordance with United

Nations Security Council Resolution 1244 hereby accede to the Central European FreeTrade Agreement as amended in Article 3 of this Agreement and shall apply it in

accordance with the provisions of this Agreement.

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Article 2

The Parties

References in the Central European Free Trade Agreement, as amended in Article 3 of

this Agreement, to its Parties shall be understood to include the Parties to thisAgreement.

Article 3

Amendment of CEFTA

The Central European Free Trade Agreement, done at Krakow on 21 December 1992,and amended by the Agreement Amending the Central European Free Trade Agreement,

done at Brno on 11 September 1995 and the Agreement Amending the Central European

Free Trade Agreement, done at Bled on 4 July 2003, is hereby amended. Theconsolidated version of the text of the Central European Free Trade Agreement, asamended, (hereinafter referred to as CEFTA 2006) is attached as Annex 1 to this

Agreement.

Article 4

Entry into Force

1. This Agreement is subject to ratification, acceptance or approval in accordance withrequirements foreseen by domestic legislation. The instruments of ratification,

acceptance or approval shall be deposited with the Depositary.

2. This Agreement shall enter into force on 1 May 2007, provided that all Partiesexcept the Republic of Bulgaria and Romania have deposited their instruments of

ratification, acceptance or approval with the Depositary by 31 March 2007.

3. If the Agreement has not entered into force for all Parties in accordance withparagraph 2 of this Article, it shall enter into force on the thirtieth day after thedeposit of the fifth instrument of ratification, acceptance or approval.

4. For each Party depositing its instrument of ratification, acceptance or approval afterthe date of the deposit of the fifth instrument of ratification, acceptance or approval,the Agreement shall enter into force on the thirtieth day after the day on which it

deposits its instrument of ratification, acceptance or approval.

5. The bilateral agreements listed in Annex 2 shall be terminated on the date of entryinto force of the present Agreement for the Parties concerned.

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Appendix 2

ANNEX 1 TO

THE AGREEMENT ON AMENDMENT OF AND ACCESSION TO THE

CENTRAL EUROPEAN FREE TRADE AGREEMENT

Consolidated Version of the

Central European Free Trade Agreement (CEFTA 2006)

PREAMBLE

The Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the

Republic of Croatia, the Republic of Macedonia, the Republic of Moldova, the Republicof Montenegro, Romania, the Republic of Serbia and the United Nations Interim

Administration Mission in Kosovo on behalf of Kosovo in accordance with UnitedNations Security Council Resolution 1244 (hereinafter called the Parties),

Reaffirming their commitment to pluralistic democracy based on the rule of law, humanrights and fundamental freedoms;

Reaffirming their commitment to the principles of market economy, which constitute thebasis for their economic relations;

Having regard to the Visegrad Declaration of 15 February 1991, the Krakw Declarationof 6 October 1991, the Poznan Declaration of 25 November 1994 and the Zagreb

Declaration of 29 November 2005 adopted as the results of the meetings of the highestrepresentatives of the CEFTA Parties;

Reaffirming their commitment to the Final Act of the Conference on Security and Co-Operation in Europe, the Paris Charter, and in particular the principles contained in the

final document of the Bonn Conference on Economic Co-operation in Europe;

Having regard to the principles contained in the Memorandum of Understanding on

Trade Liberalisation and Facilitation of 27 June 2001 adopted by the Parties under theauspices of the Stability Pact for South Eastern Europe and to the resulting network of

bilateral free trade agreements concluded between them;

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Expressing their preparedness to cooperate with each other in seeking ways and means

to strengthen the process of economic integration in Europe;

Resolved to this end to eliminate the obstacles to their mutual trade, in accordance with

the provisions of the Marrakesh Agreement Establishing the World Trade Organisation(hereinafter referred to as WTO), and to establish progressively closer trade relations;

Desiring to create favourable conditions for the development and diversification of tradebetween the Parties and for the promotion of commercial and economic co-operation in

areas of common interest on the basis of equality, mutual benefit, non-discriminationand international law;

Convinced that this Agreement will foster the intensification of mutually beneficialeconomic relations among the Parties and contribute to the process of integration in

Europe;

Wishing to contribute to the development of each Partys relation to the European Union

and integration into the multilateral trading system;

Resolved to conduct their mutual trade relations in accordance with the rules and

disciplines of the WTO whether or not they are members of WTO;

Considering that no provision of this Agreement may be interpreted as exempting the

Parties from their obligations in other international agreements, especially the WTO,

Have decided as follows:

Article 1

Objectives

1. The Parties shall establish a free trade area in accordance with the provisions of thepresent Agreement and in conformity with the relevant rules and procedures of theWTO. The free trade area shall be established in a transitional period ending at the

latest on 31 December 2010.

2. The objectives of the present Agreement are to:a. Consolidate in a single agreement the existing level of trade liberalisation

achieved through the network of bilateral free trade agreements already

concluded between the Parties;

b. Improve conditions further to promote investment, including foreign directinvestment;

c. Expand trade in goods and services and foster investment by means of fair,clear, stable and predictable rules;

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d. Eliminate barriers to and distortions of trade and facilitate the movement ofgoods in transit and the cross-border movement of goods and services between

the territories of the Parties;

e. Provide fair conditions of competition affecting foreign trade and investmentand gradually open the government procurement markets of the Parties;

f. Provide appropriate protection of intellectual property rights in accordance withinternational standards;

g. Provide effective procedures for the implementation and application of thisAgreement; and

h. Contribute thereby to the harmonious development and expansion of worldtrade.

CHAPTER I

GENERAL OBLIGATIONS APPLICABLE TO TRADE IN ALL GOODS

Article 2

Basic Duties

1. The Combined Nomenclature (hereinafter referred to as "CN") of goods shall beapplied to the classification of goods in the trade between the Parties covered by this

Agreement.

2. For each product the basic duty, to which the successive reductions set out in thisAgreement are to be applied, shall be the duty actually applied in trade between theParties on the day preceding the entry into force of this Agreement.

3. The Parties shall communicate to each other their respective basic duties.4. If, after the date of signature of this Agreement, any tariff reduction is applied to the

basic duties defined in paragraph 2, in particular following a reduction of ergaomnes duties resulting from the tariff agreement concluded as a result of

membership in the WTO or tariff negotiations within the WTO, such reduced duty

shall replace the basic duty referred to in paragraph 2 of this Article as from the datewhen such reductions are applied.

5. The reduced duties calculated in accordance with paragraphs 2 and 4 of this Articleshall be applied rounded to the first decimal place. A Party not utilising a firstdecimal point shall round the duty to whole numbers using common arithmetical

principles. Therefore, all figures which have 50 or less after the decimal point shallbe rounded down to the nearest whole number and all figures which have more than

50 after the decimal point shall be rounded up to the nearest whole number.

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Article 3

Quantitative Restrictions

1. All quantitative restrictions on imports and exports and measures having equivalenteffect shall be abolished in trade between the Parties on the date of entry into forceof this Agreement.

2. No new quantitative restrictions on imports and exports and measures havingequivalent effect shall be introduced in trade between the Parties as from the date of

entry into force of this Agreement.

Article 4

Customs Duties on Exports

1. The Parties shall abolish all customs duties on exports, charges having equivalenteffect, and export duties of a fiscal nature in trade between the Parties on the date of


2. No new customs duties on exports, charges having equivalent effect, and exportduties of a fiscal nature shall be introduced in trade between the Parties as from thedate of entry into force of this Agreement.

Article 5

Customs Duties on Imports: Standstill

No new customs duties on imports, charges having equivalent effect, and import duties

of a fiscal nature shall be introduced, nor shall those already applied be increased, intrade between the Parties as from the day preceding the signature of this Agreement.

Article 6

Customs Fees

From the entry into force of this Agreement, the Parties shall abolish customs fees

contrary to Article VIII of The General Agreement on Tariffs and Trade 1994(hereinafter referred to as "GATT") in their mutual trade and any other similar charges.

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CHAPTER II

INDUSTRIAL PRODUCTS

Article 7

Scope

The provisions of this Chapter shall apply to industrial products originating in theParties. The term industrial products means for the purpose of this Agreement the

products falling within CN Chapters 25 to 97, with the exception of the products listed inAnnex 1 to this Agreement.

Article 8

Customs Duties on Imports: Elimination

1. The Parties shall abolish all customs duties on imports, all charges havingequivalent effect, and all import duties of a fiscal nature in trade between the Parties

on the date of entry into force of this Agreement, on all products other than thosesubject to bilateral concessions as listed in Annex 2.

2. For products listed in Annex 2 the customs duties on imports, all charges havingequivalent effect, and all import duties of a fiscal nature in trade between the Parties

will be progressively reduced and abolished within a transitional period ending on31 December 2008, according to the schedules listed in that Annex.

CHAPTER III

AGRICULTURAL PRODUCTS

Article 9

Scope

The provisions of this Chapter shall apply to agricultural products originating in the

Parties. The term agricultural products means for the purpose of this Agreement theproducts falling within CN Chapter 1 to 24 and the products listed in Annex 1 to this

Agreement.

Article 10

Customs Duties on Imports

1. Customs duties on imports, all charges having equivalent effect, and other importduties of a fiscal nature on products specified in Annex 3 to this Agreement shall be

reduced or abolished according to the schedules listed in that Annex.

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CHAPTER IV

TECHNICAL BARRIERS TO TRADE

Article 13

Technical Barriers to Trade

1. The rights and obligations of the Parties relating to the application of technicalbarriers to trade, shall be governed by the WTO Agreement on Technical Barriers to

Trade, except as otherwise provided for in this Article.

2. The Parties undertake to identify and eliminate unnecessary existing technicalbarriers to trade within the meaning of the WTO Agreement on Technical Barriersto Trade. The Joint Committee, or a special committee on technical barriers to trade

issues, that may be established according to Article 41, paragraph 5, shall oversee

the process of elimination of unnecessary technical barriers to trade.

3. a. The Parties undertake not to introduce new unnecessary technical barriers totrade. They shall co-operate, in the Joint Committee, or in a special committee on

technical barriers to trade issues, to facilitate and harmonise technical regulations,standards and mandatory conformity assessment procedures with the aim of

eliminating technical barriers to trade.

b. The Parties shall inform the Joint Committee, or a special committee on technical

barriers to trade issues, of any draft text for a new technical regulation (includingany mandatory conformity assessment procedures) or standard, at least ninety days

prior to its adoption except in case of urgency as referred to in the WTO Agreementon Technical Barriers to Trade. If a Party proposes to transpose a European or

international technical regulation or standard, the respective period is thirty days.

c. The Parties are strongly encouraged, without prejudice to the WTO Agreement on

Technical Barriers to Trade, to harmonize their technical regulations, standards, andprocedures for assessment of conformity with those in the European Community

unless their use would be an ineffective or inappropriate means for the fulfilment ofthe legitimate objective pursued by the Parties.

4. The Parties undertake to enter into negotiations to conclude plurilateral agreementson harmonization of their technical regulations and standards, and the mutualrecognition of conformity assessment procedures in accordance with the relevant

provisions of the WTO Agreement on Technical Barriers to Trade and other

relevant international agreements before 31 December 2010.

5. If a Party considers that any other Party has adopted or is in the process of adoptinga measure constituting an unnecessary technical barrier to trade, the Party concernedshall notify the Joint Committee, or a special committee on technical barriers to

trade issues, which shall decide on the action to be taken.

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6. Any issue arising in the application of this Article shall be dealt with in accordancewith the provisions of Article 42 of this Agreement.

CHAPTER VGENERAL PROVISIONS

A. Operating rules

Article 14

Rules of Origin and Co-operation in Customs Administration

1. Except if otherwise stipulated in this Agreement, Annex 4 lays down the rules oforigin for the application of the provisions of this Agreement and the methods foradministrative co-operation in customs matters. The Joint Committee may decide to

amend the provisions of Annex 4.

2. Annex 5 lays down the common rules on mutual administrative assistance incustoms matters.

3. The Parties shall take appropriate measures, including regular reviews by the JointCommittee, to ensure effective and harmonised application of Annexes 4 and 5 andof the related Articles of this Agreement.

4. The Parties shall simplify and facilitate customs procedures and reduce, as far aspossible, the formalities imposed on trade. They shall resolve any difficulties arisingfrom the application of these provisions in accordance with the provisions of Article42.

Article 15

Fiscal Discrimination

1. The Parties shall refrain from any measure or practice of an internal fiscal natureestablishing, whether directly or indirectly, discrimination between the productsoriginating in the Parties and shall abolish such measures where existing from the


2. Products exported to the territory of one of the Parties may not benefit fromrepayment of domestic taxation in excess of the amount of indirect taxation imposedon them.

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products not intended for specifically military purposes, and to such traffic in

other goods, materials and services as is carried on directly or indirectly for thepurpose of supplying a military establishment; or

b. relating to the non-proliferation of biological and chemical weapons, nuclearweapons or other nuclear explosive devices; or

c. taken in time of war or other serious international tension constituting threat ofwar.

B. Competition Rules

Article 19

State Monopolies and State Trading Enterprises

1. The Parties shall adjust any State monopolies of a commercial character or State-trading enterprises so as to ensure that, in accordance with WTO provisions, no

discrimination exists between enterprises of the Parties regarding the conditionsunder which products are marketed. The Parties shall inform the Joint Committee

about the measures they adopt to implement this provision.

2. The provisions of paragraphs 1 and 3 of this Article shall apply to any body throughwhich the competent authorities of the Parties, in law or in fact, either directly orindirectly supervise, determine or appreciably influence imports or exports between

the Parties. These provisions shall likewise apply to monopolies delegated by theState to others.

3. The Parties shall refrain from introducing any new measure which is contrary to theprinciples laid down in paragraphs 1 and 2 of this Article or which restricts the

scopes of the Articles dealing with the prohibition of customs duties andquantitative restrictions between the Parties.

Article 20

Rules of Competition Concerning Undertakings

1. The following are incompatible with the proper functioning of this Agreement in sofar as they may affect trade between the Parties:

a. all agreements between undertakings, decisions by associations of undertakingsand concerted practices between undertakings which have as their object or

effect the prevention, restriction or distortion of competition in the territories ofthe Parties as a whole or in a substantial part thereof;

b. abuse by one or more undertakings of a dominant position in the territories ofthe Parties as a whole or in a substantial part thereof.

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2. Any practice contrary to this Article shall be assessed on the basis of the principlesof the competition rules applicable in the European Community, in particular

Articles 81, 82 and 86 of the Treaty establishing the European Community.

3.

By 1 May 2010 the provisions of paragraphs 1 and 2 shall apply to the activities ofall undertakings, including public undertakings and undertakings to which theParties grant special or exclusive rights. Undertakings entrusted with the operation

of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to provisions of paragraphs 1 and 2 insofar as

the application of these provisions does not obstruct the performance, in law or fact,of the particular public tasks assigned to them.

4. With regard to products referred to in Chapter III the provisions stipulated inparagraph 1(a) shall not apply to such agreements, decisions and practices which

form an integral part of a domestic market organization.

5. The Parties undertake to apply their respective competition laws with a view toremoving practices referred to in paragraph 1.

6. The Parties shall notify each other of relevant enforcement activities and exchangeinformation. No Party shall be required to disclose information that is confidentialaccording to its domestic legislation. Upon request, competition authorities and/or

other relevant authorities of the Parties concerned shall enter into consultations inorder to facilitate the removal of the practices referred to in paragraphs 1 and 2. The

Party addressed shall accord full consideration to that request. This co-ordination

shall not prevent the Parties from taking autonomous decisions.

7. If a Party considers that a given practice is incompatible with paragraphs 1 - 4 ofthis Article and if such practice causes or threatens to cause serious prejudice to the

interest of that Party or material injury to its domestic industry, it may takeappropriate measures under the conditions and in accordance with the procedure laid

down in Article 24.

Article 21

State Aid

1. Any aid granted by a Party or through State resources in any form whatsoever whichdistorts or threatens to distort competition by favouring certain goods shall, in so far

as it may affect trade between the Party concerned and other Parties to thisAgreement, be incompatible with the proper functioning of this Agreement.

2. The provisions of paragraph 1 shall not apply to products referred to in Chapter III.3. The Parties undertake to apply their respective laws with a view to ensure the

application of the principles referred to in paragraph 1.

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4. Any practice contrary to this Article shall be assessed on the basis of the principlesof the state aid rules applicable in the European Community, in particular fromArticle 87 of the Treaty establishing the European Community.

5.

If a Party considers that a particular practice is incompatible with the terms ofparagraph 1 and causes or threatens to cause serious prejudice to the interest of that

Party or material injury to its domestic industry, it may take appropriate measuresunder the conditions of and in accordance with the provisions laid down in Article

24.

6. Nothing in this Article shall prejudice or affect in any way the taking by any Partyof countervailing measures in accordance with the relevant Articles of GATT andthe WTO Agreement on Subsidies and Countervailing Measures or related internal

legislation.

7. Each Party shall ensure transparency in the area of state aid, inter alia by reportingannually to the Joint Committee on the total amount and the distribution of the aidgiven and by providing to the other Parties, upon request, information on aid

schemes and on particular individual cases of state aid.

C. Contingent Protection Rules

Article 22

Anti-Dumping Measures

1. If a Party finds that dumping is taking place in trade with another Party within themeaning of Article VI of GATT, it may take appropriate measures against the

practice in accordance with the WTO Agreement on Implementation of Article VI

of the GATT and under the conditions laid down in the Joint Declaration referringto this Article.

2. The Party will promptly notify any concerned Party and the Joint Committee on theactions and measures it takes and promptly supply all relevant information.

Article 23

General Safeguards

1. The Parties confirm their rights to take a safeguard measure in accordance withArticle XIX of GATT and the WTO Agreement on Safeguard Measures underconditions laid down in the Joint Declaration referring to this Article.

2. Notwithstanding paragraph 1, where as a result of the obligations incurred by aParty under this Agreement any product is being imported in such increased

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quantities and under such conditions from a Party to this Agreement as to cause orthreaten to cause:

a. serious injury to domestic producers of like or directly competitive products in

the territory of the importing Party, or

b. serious disturbances in any sector of the economy which could bring aboutserious deterioration in the economic situation of the importing Party,

the importing Party may take appropriate bilateral safeguard measures against theother Party to this Agreement under the conditions and in accordance with the

relevant procedures laid down in Article 24.

Article 23 bis

Notwithstanding other provisions of this Agreement, and in particular Article 23, given

the particular sensitivity of the agricultural market, if imports of products originating inone Party, which are the subject of concessions granted pursuant to Annex 3, cause

serious disturbance to the markets or to their domestic regulatory mechanisms, inanother Party, both Parties shall enter into consultations immediately to find an

appropriate solution. Pending such solution, the Party concerned may take theappropriate measures it deems necessary.

Article 24

Conditions and Procedures for Taking Measures

1. Before initiating the procedure for the application of measures provided for inArticles 20, 21 and 23 the Parties shall endeavour to solve any differences betweenthem through direct consultations.

2. If a Party subjects, to an administrative procedure having as its purpose the rapidprovision of information on the trend of trade flows, imports of products that may

give rise to a situation referred to in Article 23, it shall inform the Parties concerned.

3. Without prejudice to paragraph 7 of the present Article, a Party, which considersresorting to measures provided for in Articles 20, 21 and 23, shall promptly notifyany concerned Party and the Joint Committee thereof and supply all relevant

information. The Joint Committee shall examine the case without delay and maymake any recommendation needed to put an end to the difficulties notified. In the

absence of such recommendation within 30 calendar days of the matter beingreferred to the Joint Committee, or if the practice objected to is not abolished within

the period fixed by the Joint Committee, and if the problem persists, thecomplaining Party may adopt appropriate measures necessary in order to remedy the

situation.

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4. Measures as provided for in Articles 21, 23 and 42 shall be restricted with regard totheir extent and duration to what is strictly necessary in order to remedy the problemand shall not be in excess of the injury caused by the practice. Priority shall be given

to those measures which least disturb the functioning of this Agreement.

5. Bilateral safeguard measures under Article 23, paragraph 2 shall consist of anincrease in the corresponding rate of duty applicable under this Agreement. Theresulting rate of duty shall not exceed the lesser of:

a. the MFN applied rate of duty in effect at the time the action was taken, or

b. the MFN applied rate of duty in effect on the day immediately preceding the

date of entry into force of this Agreement.

Bilateral safeguard measures shall contain clear elements progressively leading to

their elimination and shall not be taken for a period exceeding oneyear. They can berenewable two times at most.No measure shall be applied to the import of a product

that has previously been subject to such a measure for a period of two years sincethe expiry of the measure.

6. Measures taken in accordance with the Articles referred to in paragraphs 4 and 5shall be notified immediately to the other Parties and to the Joint Committee. The

Joint Committee shall monitor the implementation of these measures, in particularwith a view to their relaxation or abolition as soon as possible.

7. Where exceptional and critical circumstances requiring immediate action make priorexamination or information, as the case may be, impossible, the Party concerned may, inthe case of Article 23, paragraph 2 apply forthwith provisional measures strictlynecessary to remedy the situation. Such provisional measures may only apply for at most

200 calendar days. Provisional measures shall be notified without delay andconsultations between the Parties shall take place as soon as possible within the Joint

Committee and in accordance with the relevant paragraphs of this Article.

Article 25

Balance of Payments Difficulties

Where one of the Parties is in serious balance of payments difficulties, or under

imminent threat thereof, the Party concerned may adopt restrictive import measures onan erga omnes basis in accordance with WTO provisions. Such measures shall, in

particular, be of limited duration and may not go beyond what is necessary to remedy thebalance of payments situation. The measures shall be progressively relaxed as balance of

payments conditions improve and they shall be eliminated when conditions no longerjustify their maintenance. The Party shall inform the other Parties forthwith of their

introduction and, whenever practicable, of a time schedule for their removal.

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CHAPTER VI

NEW TRADE ISSUES

A. Services

Article 26

Scope and Definitions

Articles in Part A of this Chapter apply to measures adopted by Parties which affecttrade in services. For the purposes of this Agreement, trade in services is defined in

accordance with Article I and, if appropriate, Article XXVIII of the General Agreementon Trade in Services (hereinafter referred to as "GATS").

Article 27

Objectives

The Parties will gradually develop and broaden their co-operation with the aim of

achieving a progressive liberalisation and mutual opening of their services markets, inthe context of European integration, taking into account the relevant provisions of the

GATS and commitments entered into under GATS by Parties being WTO members.

Article 28

Electronic Commerce

The Parties, recognizing that the use of electronic means increases trade opportunities inmany sectors, agree to promote the development of electronic commerce between them,

in particular by cooperating on the market access and regulatory issues raised byelectronic commerce.

Article 29

Evolutionary Clause

The Joint Committee shall review on an annual basis the results of the co-operation

referred to in Article 27 and, if appropriate, recommend, following its rules of procedure,the launching of negotiations with the aim to achieve progressively a high level of

liberalization in accordance with Article V of GATS. The commitments undertakenfurther to such negotiations shall be set out in schedules forming an integral part of this

Agreement.

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B. Investment

Article 30

Scope

1. The Parties confirm their rights and obligations existing under the bilateralinvestment agreements enumerated in Annex 6.

2. The provisions of Articles 30-33 of this Agreement are without prejudice to therights and obligations of the Parties arising from the Agreements enumerated in

Annex 6.

3. The Parties agree that any dispute related to the interpretation or application of theprovisions of Articles 30-33 shall not be submitted to the arbitral procedure set outin Article 43 if that dispute can be submitted to the arbitration procedures provided

for by one of the agreements set out in Annex 6.

Article 31

Objectives

1. The Parties shall create and maintain stable, favourable and transparent conditionsfor investors of the other Parties that are making or seeking to make investments in

their territories.

2. Each Party shall promote as far as possible investments made by investors of theother Parties on its territory and admit such investments in accordance with itsdomestic laws and regulations.

3. When a Party shall have admitted an investment made by investors from the otherParties, it shall, in accordance with its domestic laws and regulations, grant the

necessary permits and administrative authorisations in connection with such aninvestment.

4. To this extent, the Parties shall exchange, within the framework of the JointCommittee, information about their laws and regulations regarding theestablishment of investments, as well as any investment opportunities.

Article 32

Treatment of Investments

1. Each Party shall ensure fair and equitable treatment and full protection and securityto investments of the investors of the other Parties.

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2. Each Party shall protect investments made in accordance with its domestic laws andregulations by investors of the other Parties and shall not impair by unreasonable or

discriminatory measures the management, maintenance, use, enjoyment, extension,sale or liquidation of such investments. Nor shall the Parties adopt any new

regulations or measures which introduce discrimination as regards the establishmentof any other Partys companies on their territory.

3. The Parties shall provide, as regards the establishment and operation of otherParties investments, a treatment no less favorable than that granted by each Party to

investments made by its own investors, or than that granted by each Party to theinvestments by investors of any third State, if this latter treatment is more favorable.

4. The non-discriminatory treatment, the national treatment and the Most FavouredNation treatment provisions of this Agreement shall not apply to all actual or future

advantages accorded by either Party by virtue of its membership of a customs,

economic or monetary union, a common market or a free trade area. Nor shall suchtreatment relate to any advantage which either Party accords to investors of a thirdState by virtue of a double taxation agreement or other agreements on a reciprocal

basis regarding tax matters.

Article 33

Evolutionary Clause

1. The Parties shall consult within the Joint Committee, aiming for the gradualachievement of a broad coordination of their investment policies.

2. To this extent, the Parties affirm their commitment progressively to review theirinternal legal framework regarding investments, with the aim of facilitating theinvestment conditions. The Parties shall exchange information on these aspects

within the Joint Committee, according to Article 31, paragraph 4.

3. The Parties shall also examine the possibilities of granting similar supplementaryadvantages, in accordance with their laws and regulations, to investors of the otherParties or, as the case may be, to investors of third States.

C. Government Procurement

Article 34


This Agreement applies to all laws, regulations, procedures or practices regarding anyprocurement by central or sub-central government entities or other relevant entities.

Nothing in Articles 26-29 of this Agreement shall be construed to impose any obligationwith respect to government procurement. The definitions of Article I of the WTO

Agreement on Government Procurement shall apply.

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Article 35

Objectives

1. Each Party shall as of the date of entry into force of this Agreement ensure that theprocurement of its entities takes place in a transparent and reasonable manner, treatsall suppliers of the other Parties equally, and is based on the principle of open and

effective competition.

2. Each Party shall no later than 1 May 2010 ensure the progressive and effectiveopening of its government procurement market so that, with respect to any relevantlaws, regulations, procedures and practices, the goods, services and suppliers of the

other Parties are granted a treatment no less favourable than that accorded todomestic goods, services and suppliers. In particular, the Parties shall ensure that

their entities:

a. do not treat a locally-established supplier less favourably than another locally-established supplier on the basis of the degree of foreign affiliation to, orownership by, a person of another Party; and

b. do not discriminate against a locally-established supplier on the basis that thegoods or services offered by that supplier for a particular procurement aregoods or services of another Party.

3. This Article shall not apply to measures concerning customs duties or other chargesof any kind imposed on or in connection with importation, the method of levyingsuch duties and charges, other import regulations, including restrictions andformalities, nor to measures affecting trade in services other than measures

specifically governing procurement.

Article 36

Evolutionary Clause

1. The Parties shall review in the Joint Committee, on a regular basis, progress in theopening of their government procurement markets. The first review shall take placeno later than 1 May 2008 and focus on fulfilment of Article 35, paragraph 1. On the

basis of these reviews, the Joint Committee may recommend further actions to fulfilthe objectives of Article 35, paragraph 2.

2. If either Party in the future should grant a third party advantages with regard toaccess to their respective procurement markets beyond what has been agreed upon

in this Agreement, it shall offer adequate opportunities to the other Parties to enterinto negotiations with a view to extending these advantages to them on a reciprocal

basis.

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D. Protection of Intellectual Property

Article 37


For the purpose of this Agreement, intellectual property rights embody industrialproperty rights (patents, trademarks, industrial designs and geographical indications),

copyright and related rights, topographies of integrated circuits, as well as protectionagainst such unfair competition as referred to in Article 10 bis of the Paris Convention

for the Protection of Industrial Property and the protection of undisclosed information asreferred to in Article 39 of the Agreement on Trade-Related Aspects of Intellectual

Property Rights (hereinafter referred to as "TRIPS").

Article 38

Objectives

1. The Parties shall grant and ensure adequate and effective protection of intellectualproperty rights in accordance with international standards, in particular with TRIPS,

including effective means of enforcing such rights provided for in internationalconventions and treaties.

2. The Parties shall continue to ensure an adequate and effective implementation of theobligations arising from the conventions listed in Annex 7.

3. Eligible Parties not yet members of the conventions listed in Annex 7 shall accedeto them and undertake all necessary measures with a view to implement the

obligations arising from them adequately and effectively no later than 1 May 2014.

Article 39

Evolutionary Clause

1. If any Party, after entry into force of this Agreement, should offer a third partyadditional advantages or preferences with regard to intellectual property rights

beyond what has been agreed under Part D of this Chapter, it shall agree to enterinto consultations with the other Parties to this Agreement with a view to extending

these advantages or preferences to all of them on a reciprocal basis.

2. While the Parties express their attachment to observing the obligations deriving

from the multilateral conventions listed in Annex 7, the Parties may decide toinclude in this Annex other multilateral conventions in this field, and affirm their

commitments to review Part D of this Chapter, no later than 1 May 2011.

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CHAPTER VII

FUNCTIONING RULES

Article 40

The Joint Committee

1. The Parties agree to set up a Joint Committee composed of representatives of theParties.

2. The Joint Committee shall supervise and administer the implementation of thisAgreement. The Joint Committee will be supported by a permanent secretariat,

located in Brussels. The Joint Committee will decide on the functions andadministrative rules of the secretariat.

3. For the purpose of the proper implementation of this Agreement, the Parties shallexchange information and, at the request of any Party, shall hold consultations

within the Joint Committee. The Joint Committee shall keep under review thepossibility of further removal of the obstacles to trade between the Parties.

4. The Joint Committee may take decisions in the cases provided for in thisAgreement. On other matters the Joint Committee may make recommendations.

Article 41

Procedure of the Joint Committee

1. The Joint Committee shall meet whenever necessary but at least once a year. EachParty may request that a meeting be held.

2. The Joint Committee shall act by consensus.3. Except for the decision mentioned in Article 14, paragraph 1, a representative of a

Party in the Joint Committee may accept a decision with a reservation related to the

fulfilment of domestic legal requirements. The decision shall enter into force if nolater date is contained therein, on the day the lifting of the reservation is notified to

the Depositary.

4. On its first session after entry into force of the Agreement, the Joint Committeeshall adopt its rules of procedure that shall, inter alia, contain provisions forconvening meetings, for the designation of the Chairman and for his/her term of

office.

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5. The Joint Committee may decide to set up appropriate organs, such as workinggroups, task forces, sub-committees, and other bodies it considers necessary to assist

it in accomplishing its tasks.

6.

The Joint Committee shall adopt a commonly agreed List of Mediators from personsqualified to mediate the dispute in line with UNCITRAL Conciliation Rules.

Article 42

Fulfilment of Obligations and Consultations

1. The Parties shall take all necessary measures required to fulfil their obligationsunder this Agreement. They shall see to it that the objectives set out in the

Agreement are attained. Should any divergence with respect to the interpretation

and application of this Agreement arise, the Parties concerned shall make everyattempt through co-operation and consultations, if necessary in the Joint Committee,to arrive at a mutually satisfactory resolution.

2. Any Party may request in writing to the Joint Committee that consultations with anyother Party regarding any actual or proposed measure or any other matter that it

considers might affect the operation of this Agreement take place within the JointCommittee. The Party requesting consultations shall at the same time notify the

other Parties in writing thereof and supply all relevant information. The JointCommittee may recommend appropriate measures.

3. These consultations may take place, should the Parties concerned so agree, in thepresence of a mediator. If the Parties concerned do not agree on a mediator, the

Chairman of the Joint Committee or, if he is a national or resident of one of theParties concerned, then the first of his predecessors who is not, shall appoint the

mediator within 20 calendar days of receipt of the initial written request formediation in accordance with the rules set out in Annex 8. The mediator shall

present a final report to the Joint Committee at the latest 60 calendar days afterhis/her appointment. If no solution can be found on the basis of the mediators

report, the Joint Committee will deal with the issue with a view to finding acommonly acceptable solution. Should this fail, the Joint Committee shall

recommend appropriate measures.

4. If a Party considers that an other Party has failed to fulfil an obligation under thisAgreement, and bilateral consultations, mediation or the Joint Committee havefailed to arrive at a commonly acceptable solution within 90 calendar days from the

receipt of the notification referred to in paragraph 2, the Party concerned may takeprovisional rebalancing measures under the conditions and in accordance with the

procedures laid down in Article 24. The measures taken shall be notifiedimmediately to the Parties and to the Joint Committee, which shall hold regular

consultations with a view to their abolition. The measures shall be abolished whenconditions no longer justify their maintenance in the view of the Joint Committee,

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or, if the dispute is submitted to arbitration, when an arbitral award has been

rendered and complied with as decided by the Joint Committee.

Article 43Arbitration

1. Disputes between the Parties, arising after this Agreement enters into force betweenthe Parties concerned and relating to the interpretation or application of rights and

obligations under it, which have not been settled through direct consultations in theJoint Committee within 90 calendar days from the date of the receipt of the request

for consultations, may be referred to arbitration by any Party to the dispute bymeans of a written notification addressed to the other Party to the dispute. A copy of

this notification shall be communicated to all Parties of this Agreement. Where

more than one Party requests the submission to an arbitral tribunal of a dispute withthe same Party relating to the same question a single arbitral tribunal should beestablished to consider such disputes whenever feasible.

2. The Arbitral Tribunal shall settle the dispute in accordance with the provisions ofthis Agreement and any other applicable rules of international law. The Tribunal

will consideramicus curiae briefs from a Party not involved in the dispute.

3. The constitution and functioning of the Arbitral Tribunal shall be governed by

Annex 9. The award of the Arbitral Tribunal shall be final and binding upon theParties to the dispute.

4. Disputes under consultation or arbitration under this Agreement shall not be submittedto the WTO for dispute settlement. Nor shall an issue or a dispute before the WTO

Dispute settlement procedure be submitted for arbitration under this Article.

Article 44

Transparency

1. Each Party shall promptly publish any law, regulation, judicial decision andadministrative ruling of general application and procedure, including standard

contract clauses or any modifications to these, regarding issues covered in thisAgreement.

2. Each Party shall respond promptly to all requests by another Party for specificinformation on any of its measures of general application or international

agreements that pertain to or affect this Agreement. Parties shall establish a contactpoint to which such requests shall be made. Contact points shall forthwith convey

the request to the relevant domestic agencies.

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Article 45

General Evolutionary clause

1. Where a Party considers that it would be useful in the interest of the economies ofthe Parties to develop and deepen the relations established by this Agreement byextending them to fields not covered thereby, it shall submit a reasoned request tothe other Parties. The Parties may instruct the Joint Committee to examine such a

request and, where appropriate, to make recommendations, particularly with a viewto opening negotiations.

2. Agreements resulting from the procedure referred to in paragraph 1 will be subjectto ratification or approval by the Parties in accordance with their internal legal

procedures.

Article 46

Trade Relations Governed by this and other Agreements

This Agreement shall not prevent the maintenance or establishment of customs unions,free trade areas or arrangements for frontier trade to the extent that these do not

negatively affect the trade regime and in particular the provisions concerning rules oforigin provided for by this Agreement.

Article 47

Annexes

1. Annexes and Joint Declarations to this Agreement are an integral part of it.2. The Joint Committee may decide to amend Annexes in accordance with the

provisions of Article 40, paragraph 4 and in accordance with the domestic legal

requirements of the Parties.

3. If the Parties do not otherwise agree, the amendments referred to in paragraph 2 ofthis Article shall enter into force according to Article 41, paragraph 3 of thisAgreement.

Article 48

Amendments

Amendments to this Agreement, other than those referred to in Article 47, shall enter

into force on the date of the receipt of the last written notification, through diplomatic

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channels, by which all the Parties notify the Depositary that their domestic legal

requirements for the entry into force of the Amendments have been fulfilled.

Article 49Accession to the Agreement

1. Accession to this Agreement may take place with the consent of all Parties.2. Terms and conditions of the accession shall be determined in an accession

agreement concluded between all the Parties to this Agreement on one side and theacceding Party on the other side.

Article 50

Entry into Force

This Consolidated Version of the Central European Free Trade Agreement (CEFTA

2006) shall enter into force on the date of entry into force of the Agreement onAmendment of and Accession to the Central European Free Trade Agreement.

Article 51

Duration and Denunciation

1. This Agreement is concluded for an indefinite period of time.2. Each Party may denounce this Agreement by a written notification through

diplomatic channels to the Depositary. This denunciation will enter into force on the

first day of the seventh month after the date of receipt of the notification ofdenunciation.

3. The Parties agree that in the event of any eligible Party becoming a member of theEuropean Union that Party will withdraw from this Agreement. Withdrawal shall take

place at the latest the day before membership takes effect and without anycompensation to the other Parties subject to the altered conditions of trade.

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Article 52

Depositary

The Government of the Republic of Croatia, acting as Depositary, shall notify all Parties

that have signed this Agreement of any notification received in accordance with Article4 of the Agreement on Amendment of and Accession to the Central European FreeTrade Agreement and any other act or notification relating to this Agreement.

This Consolidated Version of the Central European Free Trade Agreement (CEFTA2006) is done in a single authentic copy in the English language.

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JOINT DECLARATIONS

Joint Declaration concerning the Application of WTO Rules and Procedures

To the extent that references are made in the context of this Agreement, to the rules andprocedures set out in Annex 1A, Annex 1B and Annex 1C of the Marrakesh Agreement

Establishing the World Trade Organization, the Parties agree to apply them irrespectiveof whether or not they are members of WTO.

Joint Declaration on Co-operation and Assistance

The Parties shall endeavour, where appropriate, to develop economic and technicalcooperation and assistance in order to provide each other with, in particular, though not

exclusively:a. advice on the ways of organising the appropriate incentive infrastructure for

investments, including investment promotion agencies;

b. frameworks and procedures to stimulate joint investments, joint ventures and

production for the markets of third countries;

c. training programs with a view to achieving a better understanding of their respective

government procurement systems and statistics and better access to their respectivemarkets;

d. one or more of the activities listed below concerning intellectual property rights:

(i) legislative advice (comments on draft laws, judicial and administrative

decisions, enforcement and other matters relating to the protection ofintellectual property rights);

(ii) advice on the ways of organising administrative infrastructure, such as patentoffices, collecting societies and inspection authorities;

(iii) training in the field of intellectual property rights administration andmanagement techniques;

(iv) specific training of judges, prosecutors, lawyers, customs and police officers

and inspectors, in order to make the enforcement of laws more effective; and

(v) awareness-building activities for the private sector and civil society onprotection and significance of intellectual property rights.

Joint Declaration on Articles 20 and 21

1. Parties to this Agreement shall no later than 1 May 2010 ensure the applicability ofappropriate competition provisions in their domestic legislation.

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2. The competition provisions in the domestic legislation of the parties concerned shallbe brought into compliance with the principles of Articles 81, 82, 86 and 87 of the

Treaty Establishing the European Community.

3.The Parties shall within the period referred to in paragraph 1 establish an operationally

independent authority in charge of the application of competition and state aid rules.

Joint Declaration on Articles 21, 22 and 23

The Parties declare that they shall not apply anti-dumping, countervailing or safeguard

measures until they have issued detailed internal regulations laying down rules andprocedures and determining technical issues relating to the application of such measures.

The Parties shall ensure full conformity of their internal regulations with the relevantWTO provisions including Article VI and XIX of the GATT and the Agreement on the

Implementation of Article VI, the Agreement on Subsidies and Countervailing Measures

and the Agreement on Safeguards. After such legislation has been implemented, theParties shall apply any anti-dumping duties, countervailing duties and safeguardmeasures in full conformity with the relevant WTO provisions.

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Appendix 3

List of Annexes (CEFTA 2006)

ANNEX 1 TO THE AGREEMENT ON AMENDMENT OF ANDACCESSION TO THE CENTRAL EUROPEAN FREE TRADE

AGREEMENT: Consolidated version of the Central European Free

Trade Agreement (CEFTA 2006)

ANNEX 1 Product lines falling within CN Chapters 25 to 97considered Agricultural products in this Agreement

ANNEX 2 Industrial products not liberalised on date of entry intoforce of the Agreement

ANNEX 2.1 Industrial products not liberalised on date ofentry into force of this Agreement for Import into the Republic

of Macedonia

ANNEX 2.2 Industrial products not liberalised on date ofentry into force of this Agreement for Import into the Republic

of Moldova

ANNEX 2.3 Industrial products not liberalised on date ofentry into force of this Agreement for Import into the United

Nations Interim Administration Mission in Kosovo (UNMIK)

ANNEX 3 Agricultural Concessions ANNEX 3.1 Import into Albania from CEFTA Parties ANNEX 3.2 Import into Bosnia and Herzegovina from

CEFTA Parties

ANNEX 3.3 Import into Croatia from CEFTA Parties

ANNEX 3.4 Import into Macedonia from CEFTA Parties ANNEX 3.5 Import into Moldova from CEFTA Parties ANNEX 3.6 Import into Montenegro from CEFTA Parties ANNEX 3.7 Import into Serbia from CEFTA Parties ANNEX 3.8 Import into the territory of Kosovo under United

Nations Interim Administration (UNMIK) from CEFTA Parties

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ANNEX 4 Protocol conserning the definition of the concept ofOriginating Products and methods of administrative cooperation

ANNEX 5 On mutual administrative assistance in Customsmatters

ANNEX 6 Existing bilateral investment agreements betweenParties

ANNEX 7 Agreements and Conventions relating to the Protectionof Intellectual Property Rights

ANNEX 8 Appointment of a Mediator ANNEX 9 Constitution and functioning of the Arbitral Tribunal

ANNEX 2 TO THE AGREEMENT ON AMENDMENT OF ANDACCESSION TO THE CENTRAL EUROPEAN FREE TRADE

AGREEMENT: Bilateral Free Trade Agreements to be terminated

upon entry into force of CEFTA 2006.

Documents

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